Huffpost Technology

Groupon IPO Dismissed By Barron's: 'This IPO Is One Deal To Avoid'

Posted: Updated:
Print Article
GROUPON IPO
AP


(Reuters) - Investors may want to avoid Groupon Inc's high-profile IPO this week because the deals and coupon website operator has an unproven earnings record and slow growth, according to Barron's newspaper.

Groupon is considering raising the price range in its initial public offering, set for Thursday, as underwriters grow more confident about demand. The company is considering raising the IPO price range and could file an amended IPO prospectus early next week, a source told Reuters this past week.

But Groupon's lack of earnings, slowing growth, and challenges from competitors including Google and Facebook casts a shadow on any initial rise in the shares, Barron's said.

"Any price gain would have less to do with the company's strategic plan than its strategy to milk its IPO for all it's worth," the newspaper said in its October 31 issue.

"A $10 billion market value is a lot for a company with no profits and an unproven business model," it added. "This IPO is one deal to avoid."

(Reporting by Jonathan Spicer) Copyright 2011 Thomson Reuters. Click for Restrictions.

Around the Web

Groupon Reevaluating IPO Plans Due to Market Volatility - WSJ.com

Groupon's IPO prospect loses luster as COO leaves – USATODAY ...

Groupon IPO a Must as Cash Needs Climb With Investor Tally: Tech

Groupon mulls raising IPO price

Google makes big changes to daily deals business

From Our Partners